Future-Proofing Your Pest Control Business in 2026

By Eddie Wooten

In recent years, the pest control industry has proven its resilience. While other sectors faced uncertainty, pest control businesses experienced a boom as people spent more time at home, gaining a new awareness of their immediate environment. 

But as economic winds shift, how can business owners prepare for what’s next? 

The key is to operate with an eye on efficiency and cost control, regardless of the economic climate.

According to Dan Gordon, a founding member of PCO Bookkeepers & M&A Specialists and a FieldRoutes Marketplace Partner, a proactive approach is better than a reactive one. 

“You should be doing that whether times are good or bad,” Gordon says of managing costs. “So I wouldn't change much unless you're not doing it right.” 

Gordon joined Bob McElhannon, a FieldRoutes account executive, and host Amanda Salvatore to share their insights in a FieldRoutes webinar, “Future-Proofing Your Pest Control Business: Navigating 2026 Trends for Strategic Growth & Resilience”

Gordon and McElhannon discussed the KPIs on which your business should focus, employee retention, and navigating an uncertain economy.

Managing your business with key metrics

To truly understand the health of your business, you need to track the right data. 

Gordon identifies four critical Key Performance Indicators (KPIs) that every owner should monitor and the results the industry’s best-in-class performers often see: 

Gross margin

Definition: The percentage of revenue remaining after subtracting the cost of services sold (including materials, labor, and other costs).

Industry sweet spot: 55-57%.

What they’re saying: "We've just issued our cost study in conjunction with NPMA, and we did one in 2019, and the interesting thing is our gross margin actually went up a few points. That's because everybody was pounding the table during COVID—'You've got to raise prices, you've got to raise prices,' and they did. 'You've got to be more efficient, got to use your computer system to build efficiency,' and they did. This gross margin used to be between 50% and 55%; now it's a little over 55%, 56%, 57%." – Dan Gordon.

Growth rate

Definition: The increase in a company's revenue, or sales, over a period. PCO Bookkeepers considers it a critical indicator of health, vitality, and long-term potential for a business.

Industry sweet spot: 10%.

What they’re saying: "Our growth index has been running right around 10%, and it's been doing it for four years or so that we've been doing this." – Dan Gordon.

Ratio of recurring to non-recurring revenue

Definition: Revenue attained from monthly or quarterly contracts or subscriptions (recurring) compared with revenue that is attained from one-time services or projects (non-recurring).

Industry sweet spot: 80%.

What they’re saying: “Building up your recurring revenue is always important because that recurring to non-recurring at 80%, if I can add more recurring revenue, my profit goes up.” – Bob McElhannon. 

Adjusted EBITDA

Definition: EBITDA is earnings before interest, taxes, depreciation, and amortization. The adjusted figure adds back one-time or discretionary owner expenses, showing the true cash flow of a business. While the measurements above contribute to this one, Gordon considers adjusted EBITDA “the big one.” 

Industry sweet spot: 20% or higher.

What they’re saying: “That adjusted EBITDA number or adjusted cash flow to ownership, that's the number that if I buy your company that I can expect to put in my pocket each month, each year.” – Dan Gordon.

Navigating the job market

Attracting and keeping skilled employees remains a significant challenge across all trades, and pest control is no exception. 

Gordon emphasizes that making employee retention a top priority is non-negotiable. 

“I would tell the other 55% that it should be a top priority, because this is an overarching theme for as long as I can remember,” he says.

So, what’s the strategy? 

It starts with competitive pay, good benefits, and providing opportunities for upward mobility. 

“As a pest control technician or salesperson, you can make a pretty good living,” Gordon says.

Beyond the fundamentals, creating an engaging work culture is crucial. 

"Ask your employees what motivates them," McElhannon says. "Ask them what you could fix in the company, what you could do better in the company."

Gordon suggests using data to make work more interactive and fun. 

“You gamify everything,” he advises. “Ten years ago, you walked into a pest control company, and people are talking about it. Now you walk in, and there's TV screens everywhere with all these KPIs. And so that's what makes it fun.”

By sharing information on production goals, sales targets, and utilization rates through accessible platforms in the office, companies can create a dynamic and competitive environment that motivates teams.

Approaching an uncertain economy

While talk of a recession can be unsettling, the pest control industry has historically been recession-resistant. 

"The industry as a whole has, and COVID absolutely proved this, we're considered an essential business, so that always helps," McElhannon says. 

However, this doesn't mean owners should become complacent. 

Managing costs is essential, but it’s important to focus on the largest expense: labor. Labor can account for up to 50% of a profit and loss statement, making it a much more significant factor than fluctuating material costs.

“If we said materials are 5% to 7% or so, if it doubled in price, it doesn't take a big hit out of your P&L,” Gordon says. “If that labor were to go up by 25%, that would take a huge bite out of your P&L.”

To offset rising labor costs and inflation, strategic price increases are necessary. 

“You should be doing price increases every year on the anniversary date of all of your contracts,” Gordon says. 

Moving away from across-the-board hikes, Gordon instead suggests a more personalized model based on customer usage. 

“Look at all your customers and raise the price in the amount that they use your service,” he explains. “The electric bill is different for everybody, so should the pest control bill.” 

By implementing these increases on the anniversary date of each contract, the process becomes a manageable, ongoing part of your business operations, ensuring profitability and sustainable growth for the future.

Ready to learn more?

If you want to catch up on all of the insight from this webinar, visit this FieldRoutes page.

If you want to see more of Dan Gordon’s insight from PCO Bookkeepers & M&A Specialists, consider reviewing the firm’s Pest Control Industry Cost Study 2025, published in collaboration with the National Pest Management Association.

And if you want to learn more about how FieldRoutes can help you track and improve key numbers and help your business drive revenue in 2026—through the software’s routing and scheduling capabilities, its ability to track marketing performance through ServiceTitan’s Marketing Pro, and the data visibility available in reporting—you’re just a click away from a free demo below.